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If you're trying to decide whether to mint NFTs with Ethereum (ETH) or Solana (SOL), you've come to the right place. In this guide, we'll look at the strengths, capabilities, weaknesses, and overall differences of each blockchain so you can make the best decision for your NFT goals. We'll also dive into whether the NFT marketplace from Explora Finance (EXPL), which has just entered its presale, is set to outperform Ethereum (ETH) and Solana (SOL) based on its White Paper.
Explora Finance (EXPL)
Ethereum (ETH)
To be precise, Ethereum (ETH) powers roughly 95% of the NFT ecosystem, so it's no surprise that when investors search for an NFT marketplace, the first sites they usually stumble upon are OpenSea, Rarible, or Nifty Gateway.
With a much larger pool of buyers and sellers – or, in other words, trading volume – Ethereum (ETH) takes the lead in terms of size. If you mint NFTs on an Ethereum (ETH) based marketplace, you're likely to gain more exposure and people willing to buy or bid on your NFTs. On the other hand, there's also a massive supply of NFTs that no one wants to bid for or buy.
Ethereum's (ETH) characteristics make it one of the best ecosystems for launching a DeFi project. Many developers are building on top of its blockchain because of its data architecture and security components.
However, when network activity grows exponentially – which happens frequently – the network experiences a significant transaction backlog, resulting in a massive increase in transaction fees that typically exceed the digits per transaction, potentially limiting the number of users who can afford to mint NFTs.
As a result, NFT creators and collectors are looking for blockchains with higher throughput, scalability, and lower gas fees. Solana (SOL) – a high-performance blockchain that scales its network using various cryptographic mechanisms – thus emerged as a serious competitor.
While paying higher gas fees can be a burden at times, the upside is that Ethereum (ETH) has more money flowing through it. According to CryptoSlam, Ethereum (ETH) had a massive selling volume of over $1.8 billion in the last 30 days, compared to $120 million on Solana (SOL) based exchanges.
Solana (SOL)
Solana (SOL) is a high-throughput blockchain that employs a Proof-of-History (PoH) consensus mechanism and a set of protocols to process transactions at a rate of more than 60,000 transactions per second.
Transaction costs in Solana (SOL) are typically less than a dollar. To take advantage of the scalability and low transaction fees, many NFT projects and collectors are migrating to Solana (SOL). They have more freedom to build their projects without being constrained by technical constraints, which is one of the reasons Solana is becoming a hub for general NFTs.
Minting NFTs with a Solana (SOL) based marketplace like SolSea is surprisingly cheap, quick, and simple to profit from once they reach the secondary market. Solana (SOL) mints are typically quickly purchased, and royalties in Solana (SOL) based markets are frequently higher than in Ethereum (ETH) based markets.
While Solana's (SOL) ecosystem isn't nearly as large as Ethereum's, it is still growing. In fact, since the beginning of 2022, Solana's (SOL) user base has been growing at a much faster rate, and analysts from JP Morgan have predicted that it will eventually overtake Ethereum (ETH).
According to data from CryptoSlam, the NFT market in Solana (SOL) has been gaining a lot of traction throughout the third quarter of 2022. The ecosystem's sales volume surpassed $1 billion by the end of January.
Early adopters often have a great opportunity to establish themselves at the top of the list by the time the ecosystem reaches a larger audience. One of their issues, however, is that the risk is usually higher. The Solana (SOL) network has experienced several outages since the beginning of 2022, forcing users to liquidate their positions because they were unable to top up their collateral during the outages.
Another issue that developers have recently addressed is the rise of rug pulls in Solana (SOL). Scammers will try to find and exploit any weak points they can find, which is usually the case with emerging technologies.
ExploraChain (EXPL)
It's rare for crypto that hasn't even been released yet to become a contender to the likes of Ethereum (ETH) and Solana (SOL). Yet Explora Finance (EXPL) has been gaining hype from the crypto market due to its versatility and multifacetedness.
As well as preparing to host a highly developed NFT marketplace, Explora (EXPL) also plans to offer P2E gaming, staking opportunities, and a BNB Launchpad, meaning that early investors can enjoy multiple streams of passive income as well as profit from the anticipated rise of EXPL. Currently, each token costs only $0.0007, which will increase as more investors buy EXPL.
According to the White Paper, the NFT marketplace from Explora (EXPL) will supposedly act as a place to store, exchange, and mint NFTs. Users of the Explora (EXPL) NFT marketplace will be able to buy and sell assets at a premium price, as well as enjoy the benefits offered by NFT swapping.
More people will consider using the NFT swap to benefit as new NFT collections enter the market on a daily basis. Explora (EXPL) users will have the opportunity to obtain an NFT from a newly discovered collection that has the potential to become a craze among NFT collectors, thereby profiting massively from NFT swapping.
Explora's (EXPL) goal is to create a large-scale NFT marketplace that is majorly advanced in terms of cross-chain interoperability. The Explora (EXPL) team also hopes that the marketplace will evolve into a place where users can trade NFT for crypto, NFT for NFT, and NFT for both NFT and crypto.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
